The Freight Transport Association has hit out proposals to increase the London Congestion Charge by 17%, warning it could damage business and put unnecessary strain on hauliers.

Under Transport for London’s proposals, which went out to consultation on Monday, the congestion charge for account holders, including hauliers that use the London ‘fleet scheme’, will be pushed up 17% from £9 to £10.50 - a bigger increase than the daily charge, which is set to rise 15%. If approved, the new charges will come into force from June this year.

“We can’t quite understand why there’s a bigger increase for those who pay in advance.Those on the fleet scheme shouldn’t be penalised,” said FTA head of policy for London Natalie Chapman.

“The purpose of the charge is to defer non-essential journeys, but there’s very little alternative for freight companies.”

The FTA said any increase would “ultimately be borne” by London’s businesses, residents and visitors through resulting higher prices for goods and services as transport companies were forced to pass on charges to customers. The body added that with no charge-free breaks available between peak hours, and no feasible way to deliver goods on public transport, TfL should exempt freight companies from the hike.

“London’s businesses rely on freight to deliver essential goods and services and without the logistics industry, the capital would simply grind to a halt,” Chapman said.

The 10-week consultation closes on 14 March, after which the findings will be presented to the Mayor of London.

The FTA is set to respond formally to the consultation over the coming weeks. It said it would push for discounts and exemptions to the scheme.

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